Project Report on Employee Participation on Business Development

EMPLOYEE PPARTICIPATION IN BUSINESS DEVELOPMENT

PROJECT REPORT

(A Report Submitted in Partial Fulfilment of the Requirements for the Degree of Master of Business

Administration in Pondicherry University)

Submitted by

Mr./ Ms……………………………

Enrolment No:………………….

MBA:……………………………………

DIRECTORATE OF DISTANCE EDUCATION

PONDICHERRY UNIVRSITY

PONDICHERRY – 605 014

(YEAR OF SUBMISSION)

CERTIFICATE OF THE GUIDE

This is to certify that the Project Work titled “ A Study On Employee Participation

In Business Development In Netstar Bpo ” is a bonafide work of

Mr./Ms………………………….. Enroll No:…………….. Carried out in

partialfulfilment for the award of degree of MBA :……………………. (Branch) of

Pondicherry University under my guidance. This project work is original and not

submitted earlier for the award of any degree / diploma or associateship of any other

University / Institution.

Place: Signature of the Guide

Date:

Dr. ALBONES RAJ M.Phil., Ph.D

Reader

Department Of Sociology

Loyola College.

Students’ Declaration

I, Mr./Ms……………………….. hereby declare that the Project Work titled “Employee

Participation In Business Development” is the original work done by me and submitted to

the Pondicherry University in partial fulfilment of requirements for the award of Master

of Business Administration in……………………………..(Area of specialisation) is a

record of original work done by me under the supervision of Dr / Mr.

Sri……………………….of …………………………………… (Organization of the

guide)

Enroll No:

Date

Signature of the Student

ACKNOWLEDGEMENT

I would like to express my thanks to NETSTAR BPO for giving me the

opportunity to take this project

I would like to thank the HR Manager and the Process Manager for providing

timely help and assistance throughout my project.

I am grateful to Prof.C.S. Robert Bellarmine, Co-ordinator of LOYOLA

TWINNING PROGRAMME for giving me an opportunity to Undergo this institutional

training and encouraging me in pursuit of the of the project work.

It is a great privilege to record my sincere thanks to Dr. Albones Raj, faculty in

charge for his guidance in presentation of this project report. I also thank all the staff

members of Twinning programme for their guidance and cooperation in bringing out this

report successfully.

(K.BALAJI)

Chapter I: Background of the Problem under study

The Advantages, Considerations and Risks of Employee Satisfaction Surveys

There are a number of distinct advantages to conducting regular employee satisfaction

online surveys but there can also be risks.

Here are listed some of the main advantages, considerations and the possible risks

associated with online employee satisfaction surveys.

Advantages

Mood and Moral Provides a simple but effective method to measure and monitor the mood

and moral of an organisation.

Identify Problems Surveys are can be very effective in identify problems areas before they

become serious, especially those that are hidden from senior

management.

Training Lack of proper training is a common cause of dissatisfaction among

employees and can lead to more serious problems such as stress.

Processes &

Procedures

As businesses evolve some of the traditional processes and procedures

can become antiquated, personnel are often the first to know and the last

to be asked. Businesses evolve and the business processes need to be

regularly re-aligned.

Communication For an organisation to run efficiently good internal and external

communications are essential, surveys can provide a method to help

organisations to monitor and measure how well an organisation

communicates.

Working

Environment

From something small like a broken chair to the more serious problem of

sick building syndrome that can result in personnel experiencing

headaches; eye, nose, and throat irritation; a dry cough; dry or itchy skin;

dizziness and nausea; and difficulty in concentrating. Surveys allow

environmental problems to be identified in a measured and controlled

manner.

Goals and

Objectives

Surveys can measure and monitor the extent that the personnel are

aligned with the senior management's business goals and objectives.

Remuneration &

Benefits

Measure and monitor how satisfied personnel are with their remuneration

and benefits.

Compliance To properly comply with an ever increasing array of regulations the

modern organisation needs to be able to disseminate information

throughout the organisation and ensure, through records, that the

information has been received, and importantly, understood. Online

surveys provide organisation with a cost effective method to meet many

of their obligations.

Keeping the

Initiative

It is always better for management to ask than be told. By conducting

regular employee surveys management are able to keep the initiative in

trying to identify problems that may otherwise manifest into demands.

Cost Effective Using an online survey service such as www.surveygalaxy.com survey

are quick and easy to create, simple to deploy and will provide real-time

results.

Considerations

Anonymous The decision to allow respondents to remain anonymous or not needs

careful consideration. A survey that is conducted anonymously may allow

http://www.surveygalaxy.com/

employees to be more candid, however, anonymity may encourage some

individuals to make wild accusations that can not be substantiated and

cause considerable concern. When in doubt it is often better to keep

everything 'on the record' rather than 'off'.

Where survey respondents are known there is the opportunity to chase for

surveys that have not been completed and also to follow up on some issues

directly with those employees who have raised them as problems.

Management

Backing

A survey that is both sanctioned and has the support of senior management

will go some way in ensuring that any action required, based on the survey

findings, will be implemented.

Incentive Most employees will feel that by being able to give their opinions that they

are already stakeholders in the exercise and will be happy to participate in

the survey as they will expect to benefit from the process.

However, some incentive may help improve the overall response rate or

could be used to encourage early participation.

Smaller incentives could be handed out to all employees or all participating

employees could be entered into a lottery to receive a more substantial

prize.

Ask the right

questions

Consider careful the questions being asked. If employees feel that the

survey is just trying to tick the right boxes the survey could backfire.

A survey that is to be conducted annually should try and ask questions that

will provide senior management with an overall health check of the

organisation.

Avoid questions that will only apply to specific departments or personnel. If

some areas of the organisation require detailed investigation consider

running separate one-off surveys that can be targeted at specific personnel.

Comments Keep free text comments to a minimum because they are difficult and time

consuming to measure and analyse.

Consider limiting free text comments to one at the end of the survey or, in

the case of surveys that are not being conducted anonymously, allow for a

post-survey follow-up to obtain more information where additional and

more specific detail is required.

Risks

Non-Action Many employees will invested time and effort in participating in a survey

and their hopes and expectations will be raised. Any post-survey non-action

is likely to promote cynicism and jeopardise any future initiatives to obtain

employee feedback.

Management should formally respond to the issues raised in surveys even if

the demands of employees are not to be met.

If senior management agree to address and resolve some issues then action

needs to have started before any further survey is scheduled.

Management Some managers regard any form of employee consultation as a sign of

weakness and can have a tendency to dismiss out of hand any negative

comment.

Warts and All A survey is likely to reveal warts and all. Senior management should be

prepared for discovering that the top down view can differ from the bottom

up view and that ignorance, of any identified problem, can no longer be

used as an excuse.

Can Cause

Problems

Where surveys reveal, or bring problems to the surface, there could be a

tendency for senior management to blame the messenger

REVIEW OF LITERATURE

Employee participation and company performance: a

literature review

The effects of participation schemes vary with the environment into which they

are introduced. An insecure workplace environment may induce employees'

compliance with participation measures, but may not achieve the commitment

needed for attitude changes.

Links between participation and attitude change appear to depend on the degree of

influence granted to employees under participation measures. Low degrees of

perceived influence are unlikely to produce positive results. However, middle

management appears to resist participation initiatives which are perceived as

reducing their influence or authority, thus posing an obstacle to the success of

participation programmes.

A combination of financial and work-related participatory measures can have a

positive impact on company performance as employees do not all react to

participation initiatives in the same manner. Some respond well to financial

initiatives and others to more work-related elements.

Assumptions that participation measures affect all employees identically,

regardless of gender, race, age and contractual status, can amplify social

disadvantage. Disadvantaged groups, such as older workers, disabled people and

those with caring commitments, may have only a restricted voice at work.

In terms of the work-life balance and family-friendly working, employees' voices

remain muted. They tend to have a weak collective voice in larger organisations,

whereas in some smaller firms individuals can sometimes negotiate flexible

working arrangements.

The researchers conclude that a combination of participation and welfare

measures (such as equal opportunities and family-friendly policies) appears to

enhance organisational performance and the quality of working life. Policy

support should focus on union recognition and activity within a human rights

framework, since this can positively influence employees' behaviour towards

organisational goals.

Background

Economic changes in recent decades have required employers to seek more efficient and

flexible means of production. Deregulation and privatisation have also significantly

altered the UK's industrial relations climate, with a decline in trade unions' influence and

membership. Mirroring this has been the growth in ‘new' forms of work-related

participation by employees, under the banner of human resource management and

associated programmes and strategies for partnership and high commitment.

Governments must balance the needs of a competitive economy with the welfare of their

citizens. A change in political climate has seen social partnership currently being

promoted by all interested parties. Reflecting this change, the inclusion of trade unions in

government consultation exercises is significant.

Against this background, the three main rationales for introducing employee participation

are based upon different economic, social and political assumptions:

Economic – changes in employees' attitudes and behaviour are achieved through

financial participation, by offering employees a stake in the firm. Employees'

association with management values and goals is thereby increased, and they are

more motivated and committed to achieving those goals.

Social – by catering for employees' social needs, through improved job security

and satisfaction and quality of working life, higher performance is achieved.

Alternatively, satisfying social needs can be treated as an end in itself.

Governmental – current UK policy is to improve national economic efficiency

while also improving the experience of work for employees.

This study formed part of the Joseph Rowntree Foundation's Work and Opportunity

programme. The researchers reviewed the literature on employee participation.

Does participation work?

Not all the literature agrees on the universal, positive effects of participation. Some

suggests that participation may have no effect or even negative effects on performance.

However, it is difficult to discern a definitive pattern. Lack of consistency in the

outcomes of participatory measures suggests that schemes are not isolated from the

effects of the external economic, political and social environment.

Attitude change

Participatory measures such as teamworking and high-involvement work practices

demonstrate improvements in performance, but can also have less positive outcomes for

employee and social well-being. Performance changes may occur because participation

leads to changed attitudes which lead to higher performance. Alternately, changes to

behaviour and performance may be achieved not through attitude changes but through

fear and an insecure or intensified work environment.

One explanation for these contradictory results is that participation schemes are

sometimes introduced as part of restructuring packages. When employees are faced with

an insecure environment, participation may induce compliance and not the attitude

changes necessary for employees' commitment to the enterprise. If this is so, behavioural

changes may not be of the order anticipated.

The degree of influence accorded to employees is also important. Low levels of

participation with little employee autonomy have been identified as a reason for

disappointing results. Where employees' expectations have been raised by introducing

participation, but there is little real improvement in employee influence, workers may

express resentment and dissatisfaction. Where participation is only from the top down,

workers may feel that they are being lectured and not listened to. Even where

participation is from the bottom up, workers may feel that management is using their

ideas, with no return seen by employees.

High levels of participation also have their own problems. Some authors claim that

employees do not make hard decisions, opting for outcomes that maximise income, not

profit. Others claim that employees are not able to discipline co-workers, and that

decision-making takes too long. From the management perspective, high degrees of

employee influence may mean that managers' input in decision-making is reduced.

Whether from concern that their authority is being compromised or through dilution of

the decision-making process, this may result in reduced competitiveness.

Participation can also be categorised as individual versus collective. Individualised forms

of participation may clash with existing collective arrangements and fail to induce a

harmonious climate. Concerns have also been expressed over individualised financial

participation, and a fall in share prices could make it harder to attract high-quality staff.

Collective participation, on the other hand, can work with existing labour-relations

channels and attitudes in a productive way. The role of trade unions therefore continues

to be significant.

However, collective participation is no guarantee of positive attitude change.

Management also has to accept the ethos of participation, and middle and supervisory

management is a particularly difficult group to influence.

Combining participation measures

The potential for positive impact on performance seems to arise when participation

measures are used in combination, either as financial and work-related participation, or as

representative and direct participation. Either combination may act upon employee

perceptions, encouraging high-trust relations within the workplace and allowing

employees with different motivations to enjoy the benefits of participation. Employees

are not a homogeneous group responding identically to participation initiatives. Different

employees have different motivations: some respond to financial incentives and others to

more social or work-related ones. This is why a combination of financial and work-

related participation appears to have a positive effect on performance.

Transferability

A further issue is the transferability of participation schemes, particularly between large

and small firms. It is uncertain whether participation schemes suitable for large firms will

have positive effects in smaller companies, or whether participation measures can be

transferred between industrial sectors and even between different national conditions. For

example, the success of Japanese profit-sharing and other involvement techniques has

been accounted for by Japan's unique culture, which emphasises mutual obligations by

employee and employer.

Workplace equality

Questions arise concerning the benefits of participation measures to workplace equality.

Work-related participation can place a premium on social factors such as ability to

communicate and the time available to commit to participation. Participation can

therefore amplify social advantage and, by the same token, social disadvantage; for

example, caring responsibilities may mean that some employees have relatively less time

to attend meetings.

In addition, some schemes may be based upon questionable assumptions about

employees – for example, that women are sometimes less committed to work and perhaps

less willing to participate. However, a number of studies have refuted this assumption.

Other potentially excluded groups also suffer from amplified disadvantage, including

ethnic minorities, single parents, agency workers and temporary workers, with possibly

limiting effects on their capacity and opportunity for participation.

Discrimination

Less advantaged groups and individuals, such as older workers, ethnic minorities and

disabled people, may have a restricted ‘voice' within the workplace. Coupled with greater

employment insecurity, this can permeate workers' performance through frustration and

impotence, with a negative impact on both organisational performance and quality of

working life.

The evidence indicates that participation schemes in tandem with welfare measures –

such as equal opportunities and family-friendly policies – improve organisational

performance and the quality of working life. By contrast, perceptions of unfairness have a

negative impact.

Employee participation and family-friendly working

Some studies which have examined the business consequences of implementing family-

friendly employment policies have found benefits in doing so. Others have tried to

determine whether employees have a voice over work-life issues, and how instrumental it

might be in establishing family-friendly employment policies.

Employees appear to have a voice of some kind in larger organisations. It tends to be

collective, and expressed through trade unions or staff associations. Smaller enterprises

typically lack collective means of expression, though there can be direct communication

between individual employees and their employers over flexible working. Some studies

have reported individuals negotiating informal arrangements with their managers in small

and medium-sized enterprises to suit their individual circumstances, but not all

employees have a powerful enough voice to achieve this.

Family-friendly policies appear to be more widespread and deeply embedded in

enterprises which recognise unions, though this association does not imply that unions

have a more effective voice. Various studies have confirmed the low-key role of trade

unions. Consultation – even with and among line managers – also appears to be rather

restricted, with the possible exception of health services, where there is an organisational

cultural tradition of consultation.

However, the major factor influencing employers to implement or extend family-friendly

policies appears not to be collective or individual employee pressures, but labour-market

conditions backed by minimal statutory requirements.

The management of time is an essential workplace process over which employees –

especially those with domestic responsibilities – need a measure of control in order to

combat tensions between the demands of work and home. Despite some softening of the

political climate towards trade unions and scarcity of labour in some sectors, there is little

evidence that employees, collectively or individually, have been able to make any

significant impression on the work-life agendas of companies, even with evidence that

there can be a business case for such policies. It also seems that some managers continue

to adopt a gendered and possibly marginalised perspective of work-life issues.

Research has also shown that long working hours – another major dimension of work-life

conflict – have scarcely been touched by the Working Time Regulations or high-profile

concerns expressed in the media and elsewhere. In terms of the work-life balance and

family-friendly working, the evidence suggests that the voices of employees remain

muted.

Policy implications

The extent of current political support for employee participation is mixed. At times it

appears unco-ordinated or even contradictory, as evidenced by the Government's

ambiguous stance towards greater European influence over participation practice and

work reforms such as the Working Time Directive. In addition, work-related participation

policies focus on efforts to promote collective (though not necessarily trade union-based)

participation through measures such as social partnership, while financial participation

legislation leans towards individualised programmes. Current policy appears to be trying

to appease both employers' and to a lesser extent trade union aspirations, though

initiatives to date seem to point to the former direction.

This apparent lack of co-ordination of policy will have a disproportionate impact on

small firms. Small firms are less likely to introduce work-related participation measures

than larger companies, therefore providing few opportunities to access the positive effects

of combining participation schemes.

On top of this, the Employment Relations Act 1999 works against the development of

collective participation in small firms through the exclusion of enterprises with 20

employees and under from union recognition rights. This possibly excludes up to five

million workers in the UK. Since the quality and quantity of welfare policies are

associated with trade union presence, small firms and their employees could be missing

out on the positive effects of combining participation and welfare schemes. Furthermore,

the introduction of European Works Councils (EWC) applies only to large, complex

enterprises with specific cross-European operations. Here, policy needs to focus on the

training of EWC delegates in order to realise the positive effects of participation.

There are also some areas where the reach of policy is limited. Participation measures are

not isolated from the effects of the external environment. Economic fluctuations have an

impact on share prices, for instance, and the voluntary nature of many participation

schemes means that they are vulnerable to cost-saving exercises. In addition, there are

discrepancies between how a policy is conceived at national or organisational level and

how it is interpreted at company or workplace level.

Attrition in Indian BPO Industry

What is the biggest challenge for the BPO industry in India today? Well, it is a no

brainer: Attrition!

The business process outsourcing (BPO) industry in the country which is expected to

employ around one million people by 2008 is facing the challenge of finding quality

human resources given the current attrition rate of around 50 percent.

Analysts say attrition rates vary by 20%-40% in some firms, while the top ones averages

at least 15%. Nasscom in a report said the outsourcing industry was expected to face a

shortage of 262,000 professionals by 2012.

The size of the Indian BPO market is likely to be around $9-12 billion by 2006 and will

employ around 400,000 people, ICRA said in its Indian BPO industry report.

Mercer India said the industry should look beyond the traditional areas of recruitment and

some thought should be given to employ physically challenged people and housewives.

The reasons for the high rate of attrition was due to various factors like salary, work

timings, other career options, adding that there is always the danger of costs increasing

while billing rates decline.

With 245,100 people employed at the end of March 31, 2004 against 171,100 last year,

the industry witnessed a hiring growth rate of about 40-42 percent. On the hiring front,

the industry absorbed about 74,000 people in 2003 despite the attrition rate of 45-50

percent being a matter of concern.

Attrition rates in IT-enabled business process outsourcing sector have come down from

the 30-33 per cent being witnessed of late to about 25 per cent now, according to

statistics compiled by the National Human Resource Development Network.

Attrition rates %

US 42%

Australia 29%

Europe 24%

India 18%

Global Average 24%

*Source-Times News New York (2003)

If you compare attrition rates for a Voice and Non-voice process, then attrition rates are

significantly lower in a non-voice process. As the industry moves up the value chain and

becomes a full-scale BPO player, attrition rates will further decrease.

For BPO service providers, moving up the value chain is critical, given the attrition rates

in the industry, which are on an average higher in low value-added segments (in call

centres) as compared to higher value-added segments like engineering.

It will not be possible for the industry to arrive at a blanket agreement on poaching but

bilateral agreements between companies are being signed. Basic norms are being put in

place and code of ethics is being stressed upon by industry. Companies are being

encouraged to adopt responsible behavior in order to ensure that the industry does not

become a victim of its own actions. Industry needs to go aggressive but not cannibalistic.

In order to ensure a consistent flow of trained manpower in the future, the industry needs

to work with the government to introduce courses at a school and college level, which are

in line with the requirements of the ITES-BPO industry. India has one of the largest pool

of English speaking graduate workforce. The challenge for the industry is not in

employment but employability. The industry is also hiring professionals from outside the

industry in order to meet its steady supply of manpower.

http://www.bpoindia.org/research/attrition.shtml


Honest corporate managers will tell you that to make offshoring work, you need at least a

300% to 400% wage spread between American software writers, engineers, accountants,

and call-center employees and their Indian and Chinese counterparts. Labor costs have to

be very, very low overseas -- not just lower -- to compensate for time-shifting, managing

over such long distances, and decreased productivity.

High attrition rate, price wars, poor infrastructure and lack of data protection laws could

derail India's booming outsourcing industry. This seemed to sum up the views of BPO

fraternity at the Nasscom summit here.

Tackling Attrition Head-On

Industry experts feel, as the industry was still in its nascent strategy there was lot of

strategies available to reverse this trend and make it an attractive employer.

NASSCOM ITES-BPO forum has identified HR as one of the key challenges of the

ITES-BPO industry and has formed a special task force to address short-term challenges

such as Attrition and also long-term challenges such as ensuring availability of a skilled

talent pool.

To arrest this trend, companies can look into various options like good rewards, bonding

programme, flexible working hours and stronger career path. With attrition rates ranging

between 30-60 percent in the BPO industry, HR specialists feel that a scientific and

analytical approach should be implemented.

The tremendous turnover rate is undeniably one of the main problems faced by the BPO

industry globally. HR specialists at the Nasscom 2004 summit brainstormed on various

approaches to handle this bugbear- either declare war on attrition and tackle it head on, or

adopt a more scientific analytical approach.

Pay cheques alone are not enough to retain employees. Management also needs to

consider other aspects like secure career, benefits, perks and communication. The

attrition battle could be won by focusing on retention, making work a fun place, having



education and ongoing learning for the workforce and treating applicants and employees

in the same way as one treats customers.

Companies need to go in for a diverse workforce, which does not only mean race, gender

diversity, but also include age, experience and perspectives. Diversity in turn results in

innovation and success. The 80:20 rule also applies to recruitment, she quipped, since

studies showed that 80 percent of the company's profit comes from the efforts of 20

percent of the employees. So BPOs need to focus on roles, which have the most

important impact.

According to experts, the cost of attrition is 1.5 times the annual salary. Age should not

be a barrier for training employees and could in fact bring in more stability to the

company.

Offshoring -- especially for BPO (business process outsourcing) -- is about to hit a wall.

After all, despite being a relatively new phenomenon made possible by advances in

communications, it remains subject to one timeless principle of economics: supply and

demand.

The HR pros call it attrition. On any particular project outsourced to a service provider in

India, you can expect at least a 15 percent turnover rate for personnel assigned to the

project within a year. For some projects, BPO chief among them, it is not unheard of for a

whole staff to turn over by year’s end, according to Paul Schmidt, a partner in the global

services delivery practice at TPI, one of the larger sourcing advisory organizations.

With technology so closely tied to business strategy, to talk about BPO today is to

understand the consequences of not being able to deliver expected services in a timely

manner due to high turnover.

Schmidt puts it much better than I can: “There is a tremendous opportunity for value

leakage,” he tells me. In other words, if you don’t pay enough attention up front to the

realities of attrition at your service provider, you will end up with higher costs, lower-

quality deliverables, or, worse, a project that goes bust.

The high attrition rate, particularly in India, finds its roots in the phenomenal growth of

outsourcing and offshoring. A recently completed TPI study, “India: An Attractive BPO

Destination Marred by Alarming Attrition” by Dinesh Goel and Prabhash Thakur, pegs

the growth of BPO attrition during the past three years at approximately 50 percent per

year.

What’s fueling this attrition is that, despite all you may have heard about how many

computer science majors graduate from Indian universities annually, there is a finite

talent pool -- and those graduates know it.

The study reports that “the rate of attrition seems to be increasing,” and it questions

whether the offshore BPO industry can sustain growth and satisfy clients over the long

term given this trend. The study cites inconsistent delivery of service levels, loss of

client-specific knowledge, and additional investment in retraining service provider staff

as consequences of these high attrition rates.

Obviously, you can’t just ignore the problem and assume that it’s up to the service

providers to fix it. There are steps you should take, as an offshoring client, to help

mitigate the fallout of attrition.

Schmidt recommends a carrot-and-stick approach.

A company must insist on an SLA that quantifies the level of attrition they are willing to

tolerate. There must also be clauses within the SLA stating that when turnover reaches a

certain threshold it is the service provider’s responsibility to retrain and re-educate

workers.

On the carrot side, Schmidt says the client should provide ample training and career

movement. It should also consider including engaging and challenging work in the mix.

And, allowing individuals to rotate through opportunities to work in the United States is

certainly a big motivator for keeping them on a particular project -- not to mention

reward and recognition programs with financial incentives.

That said, Schmidt doesn’t see service provider fees going up long-term, mainly due to

the competitive climate that persists in India.

That’s where Schmidt and I part company. As I see it, supply and demand will increase

the cost of offshoring. Over time, this will level the playing field -- and will motivate

companies to reconsider whether they should keep projects in-house or send them

overseas.

THE ROLE OF EMPLOYEE PARTICIPATION IN BUSINESS.

"People don't leave their jobs, they leave their managers."

Although committed and loyal employees are the most influential factor to becoming an

employer of choice, it's no surprise that companies and organizations face significant

challenges in developing energized and engaged workforces. However, there is plenty of

research to show that increased employee commitment and trust in leadership can

positively impact the company's bottom line. In fact, the true potential of an organization

can only be realized when the productivity level of all individuals and teams are fully

aligned, committed and energized to successfully accomplish the goals of the

organization.

As a result, the goal of every company should be to improve the desire of employees to

stay in the relationship they have with the company. When companies understand and

manage employee loyalty - rather than retention specifically - they can reap benefits on

both sides of the balance sheet i.e., revenues and costs.

On the revenue side of the balance sheet, loyal and committed employees are more likely

to go "above and beyond" to meet customer needs and are highly motivated to work to

the best of their ability. Both of these traits are crucial for continued customer

commitment and ongoing revenue and growth for the company.

On the cost side, loyal employees stay longer, resist competitive job offers, do not

actively look for other employment and recommend the company to others as a good

place to work. These four behaviors positively influence the cost side of the balance sheet

because they are leading indicators of employee retention. The longer companies keep

their employees, the longer they can avoid having to pay to replace them.

In other words, rather than focusing only on retention (that is, trying to retain employees

who have already decided to leave), organizations should proactively recognize the

benefits of

understanding, managing and improving employee loyalty. The most successful

organizations are those that can adapt their organizational behavior to the realities of the

current work environment where success is dependent upon innovation, creativity and

flexibility. Additionally, the dynamics of the work environment have to reflect a very

diverse population comprised of individuals whose motivations, beliefs and value

structures differ vastly from the past and from each another. Arguably, the most valuable,

but also volatile, corporate asset is a stable workforce of competent, dedicated

employees, since such an employee base gives companies a powerful advantage; depth of

knowledge and organizational strength.

One of the key steps to understanding and improving employee loyalty is by

acknowledging the importance of the following factors in building loyalty and

satisfaction:

Broadly-defined responsibilities rather than narrowly-defined job functions

Effective and regular performance evaluations, both formally and informally

A corporate emphasis on employee learning, development and growth

Wide-ranging employee participation in the organization as a whole

Typically, a combination of factors influences employees' decisions to stay at their

current job. Contributing factors include satisfying work, a sense of job security, clear

opportunities for advancement, a compelling corporate mission combined with the ability

to contribute to the organization's success, and a feeling that their skills are being

effectively used and challenged. Specifically, employees who enjoy their work, identify

themselves with their employer and perceive that the company is flexible regarding work

and family issues also intend to stay with the organization.

Today, employee loyalty needs to be earned, rather than assumed, and must be specific,

rather than general - employees are looking at their employment as a means of achieving

personal goals rather than simply being the "good corporate soldier" of the past. This

means that companies need to express and act on a commitment to develop employees'

career objectives by introducing initiatives that make employees believe that their current

job is the best path to achieving their career goals.

In particular, consider the following elements of effective strategies designed to build

loyalty and retain key employees:

Include opportunities for personal growth and invest heavily in the professional

development of the best people in the organization.

Provide employees with well-defined career paths (including a succession plan), mentors

and tuition reimbursement for job-related education.

Train employees, even if it makes them more attractive to the competition. Without

seeing an opportunity on the horizon, few high potential employees will stay with a

company and allow themselves to grow stagnant.

Acknowledge non-work priorities by recognizing and responding to employees' needs for

greater balance in their lives, since employees will develop loyalty for organizations that

respect them as individuals, not just as workers.

Another approach to the issue of loyalty is to consider the value of the five "I's":

Interesting work. No one wants to do the same boring job over and over, day after day.

Although any job will require some repetitive tasks, all jobs should include at least some

parts that are of high interest to employees.

Information. Information is power and employees want to have the information they need

to know to do their jobs better and more effectively. And, more than ever, employees

want to know how they are doing in their jobs and how the company is performing

overall. It is vitally important to open the channels of communication in an organization

to allow employees to be informed, ask questions, and share information and to inspire

them to share the vision of the company.

Involvement. Managers today are faced with an incredible number of opportunities and

problems and, as the speed of business continues to increase, the amount of time that they

have to make decisions continues to decrease. Involving employees in decision-making,

especially when the decisions affect them directly, is both respectful and practical. Not

only do those closest to the problem typically have the best insight as to what to do,

involving them in decision-making will increase their commitment and improve the

success of implementing new ideas or change. Similarly, management needs to follow

through on promises and live the values they preach.

Independence. Few employees want their every action to be closely monitored. Most

employees appreciate having the flexibility to do their jobs as they see fit. Giving

employees latitude increases the chance that they will perform as desired, as well as

bringing additional initiative, ideas, and energy to their jobs. Employees also need to be

encouraged to achieve their best potential.

Increased visibility. Everyone appreciates getting credit when it is due. The occasions to

share the successes of employees with others are almost limitless. Giving employees new

opportunities to perform, learn, and grow as a form of recognition and thanks is highly

motivating for most people.

Another important strategy for improving loyalty is to implement a systematic process of

performance reviews, since effective reviews can simultaneously increase employee

morale and productivity. To achieve their primary objectives, such as improving the

working relationship between employee and supervisor, performance reviews should be

structured so as to:

Accurately define the employee's job description, including a focus on the skills most

important to the employee's job

Discuss the job skills the employee performs well on and identify areas that need

improvement so as to fairly summarize their most recent job performance

Set mutual and worthwhile goals, which are the heart of a professional growth plan

Provide useful coaching to improve the employee's performance

With these objectives, performance reviews can make an important and ongoing

contribution to furthering each employee's career.

Related to the role of performance reviews, another important influence on employee

satisfaction is a sense of being led by capable management, with both immediate

supervisors and senior management having a clear sense of direction for the organization.

One of the forces that disconnects employees from their companies is management's

ever-changing corporate focus. By introducing yet another corporate initiative,

employees come to question the credibility of management and the focus of the company.

They begin to wonder what the company stands for, where it's going, and if the latest

initiative is yet another "here today, gone tomorrow" program.

Employees are therefore skeptical at best - and cynical at worst - about their company's

perpetually shifting focus. Without a constant, long-term strategic vision, organizations

risk confusing, bewildering, depressing and disconnecting with their employees. Within

an environment of ever-changing focus, employees find it hard to see a strong link

between their role and the company's core purpose. Alternatively, communicating a

company's shared vision and establishing a shared mission with employees are important

means of enhancing employee commitment. Employees feel a stronger sense of job

satisfaction when they agree with the strategic decisions, especially when they are

involved in developing the strategic direction.

In addition to establishing and communicating a strategic vision for the company, loyalty

also requires building a partnership between management and employees and creating an

environment of mutual respect, involvement and open communication. Maintaining open

lines of communication with employees will enable senior management to keep up with

their changing needs into the future.

Recent studies have shown that managers, whether front-line supervisors, project leaders,

team captains or senior management, actually have more power than anyone else to

reduce unwanted employee turnover because the most important factors driving

employee satisfaction and commitment are largely within the direct manager's control.

These include providing recognition and feedback regularly, offering opportunities to

learn and grow, helping to ensure fair compensation reflecting an employee's

contributions and value to the organization, fostering a good work environment, and

above all, recognizing and respecting the uniqueness of each employee's competencies,

needs, desires and working style.

At the supervisory level, though, managers also need to strike the right balance of using a

more employee-centered leadership style, under which their employees are welcome to

participate in making decisions (i.e., "leadership through collaboration"), but without

going so far as to abdicate responsibility for decision-making. When the participatory

approach becomes excessive, employees may feel that they are being given more

responsibility than their positions should require and, thus, can feel overworked or

underpaid for the work expected.

It is also critically important to recognize that, when employees indicate the intention to

leave, they generally do - this means that attrition can be predicted through survey

measurement, which gives employers an important "window of opportunity" to foresee

and address talent loss within specific departments so as to change the environment that

is causing employees to leave. Research has indicated that the biggest gaps between those

who intend to stay and those who intend to leave can be best summarized as (1) the

opportunity for employees to use their skills effectively and (2) differing perceptions of

the leadership ability of senior management. In conjunction with these key differences,

projections have shown that improvements in the areas directly related to turnover can

lead to a potential 5% decrease in actual turnover, which has real financial benefits for

the organization.

Did you realize that employees change jobs more for career options and training

opportunities than they do for money and benefits? In fact, seeking opportunities for the

long term rather than just the current job has much more influence over job change than

monetary compensation - it is evident that money is a satisfier, but not a driver, of

employee loyalty. Similarly, it is not salary that makes a committed employee.

Compensation packages, while important, have become secondary to the employees'

desire to be challenged, to contribute, to be recognized and to know how they will fit into

the organization.

However, this is not to claim that pay and benefits are unimportant. There are strong

correlations between compensation, benefits plans and employee commitment. It should

not be surprising, though, that the compensation plans with the strongest link to employee

commitment are those that give employees a stake in the future success of the

organization. Compensation plans in general help drive commitment when employees

understand the program and believe it to be fair. It is also worth noting that the way an

organization distributes money indicates what management really wants including

sending a message to employees as to whether the company truly pays for performance.

In short, then, there are five actions organizations should take to reduce attrition and

improve employee satisfaction:

Demonstrate to employees that the company cares about them, wants them to advance in

their careers and will help them satisfy their need for personal growth.

"Walk the talk" by not only communicating the corporate strategy but by also ensuring

that it is applied consistently throughout the organization, including making the rewards

system consistent with strategic goals.

Watch for and eliminate all inconsistencies between promoting a belief in employees and

managerial behavior or policies that undermines that commitment.

Fight attrition with smart training that is not only relevant but helps broaden employee

experiences and provides development opportunities. Weed out poor managers because

many employees leave their jobs because they are unhappy with their bosses - remember

the adage that "people don't leave their jobs, they leave their managers."

COMPANY PROFILE :

Netstar Bpo are based in the heart of MELBOURNE and have their offshore office in

CHENNAI, India . This allows us to bring the economics of global operations to their

customers and most important allows us to leverage the speed and efficiency of a 24 hour

day ensuring quick turnaround on deliverables.

Netstar endeavors to be a long term partner addressing all aspects of the outsourcing

requirement of clients. To companies seeking BPO solutions, Netstar delivers the best by

bringing cost efficiency with quality processes, 24x7 operations, state-of-the art

infrastructure and a dedicated team, and by delivering quality services to clients' in their

critical but non core areas of operations.

Netstar b.p.o operates a 130-seat call centre in Chennai , India , with state-of-the-art

technology and experienced customer service professionals for customers in Australia ,

UK and the US . The Contact Centre services include a combination of inbound and

outbound services for business to business (B2B) and business to consumers (B2C). The

clients cover a broad range of industry segments that includes telecommunications, retail,

financial services, travel/hospitality, technology and non profit organizations.

Focused on achieving significant improvements in their client’s performance

Business today- solutions

The current economic scenario necessitates an organization to keep pace and to focus on

its core competencies. A practical and effective way of doing this is by collaborating with

a service provider who has a sound understanding of the business of the client and

appreciates the nuances that challenge clients in meeting their business objectives. Such a

perspective brings to the fore a mature approach in delivering optimal services to client.

Current scenario

Evolving market dynamics

Risk of faster technology obsolescence

Complex products & services

Enmeshed core & non-core business operations

Organisation challenges

Demanding customers

Increasing operating & capital costs

Fewer product differentiators

Maintaining profit margins while increasing sales

Unavoidable focus on critical non-core business operations

Implementing customer care service delivery process

Waning exit barriers & brand preferences

"Average" performance is no longer good enough.

Too many organizations mistakenly set their sights on simply matching industry averages

on common metrics like cost or productivity. However, given the pace of change and

increasing emphasis on ROI, average performance is no longer good enough; companies

must reach for world-class or risk falling into the ranks of the poorest performers. Any

company can achieve world-class business performance.

The principal difference between "average" and "world-class" organizations is the latter's

use of best practices to help them spend money intelligently, improve competitiveness

and deliver value. These companies may not have achieved excellence in each area but

the best practices they have implemented and perfected are at the heart of their

exceptional performance.

Their robust, multi-dimensional assessment helps you understand how your performance

impacts your company at the strategic level.

At Netstar they believe the best approach to calculating Return on Investment

(ROI) is to start by identifying the benefits - both for cost savings as well as revenue

growth:

Each benefit should be explained in terms of how it will be achieved and then categorized

into either "direct" or "indirect" benefits. A "direct" improvement can more easily be

monitored and attributed to the project, while "indirect" benefits (also called "soft"

dollars) are more subjective.

Consulting and Turnkey Outsourcing Services :

They are based in the heart of MELBOURNE and have their offshore office in

CHENNAI, India . This allows us to bring the economics of global operations to their

customers and most important allows us to leverage the speed and efficiency of a 24 hour

day ensuring quick turnaround on deliverables.

Netstar endeavors to be a long term partner addressing all aspects of the outsourcing

requirement of clients. To companies seeking BPO solutions, Netstar delivers the best by

bringing cost efficiency with quality processes, 24x7 operations, state-of-the art

infrastructure and a dedicated team, and by delivering quality services to clients' in their

critical but non core areas of operations.

Netstar b.p.o operates a 130-seat call centre in Chennai , India , with state-of-the-art

technology and experienced customer service professionals for customers in Australia ,

UK and the US . The Contact Centre services include a combination of inbound and

outbound services for business to business (B2B) and business to consumers (B2C). The

clients cover a broad range of industry segments that includes telecommunications, retail,

financial services, travel/hospitality, technology and non profit organizations.

Turnkey Outsourcing Services :

Every non-core activity can be outsourced by companies today. Companies are spending

more time focusing on their core business activities assigning their operational and back

office work to several outsourcing companies. Industry experts state that outsourcing is

essential for companies to compete in today's economy. Improvement in cost, quality and

productivity has encouraged customers to rapidly scale up their outsourcing activity.

Every business benefits hugely through outsourcing as companies are able to gain a

technical and functional edge on the competition without capital investment. Today

outsourcing companies are out-growing each other in number, and the only way to stay

ahead of the competition and achieve success in the global market, is for companies to

focus on branding and on offering solutions.

Quality- High quality at a cost-effective rate :

Quality Assurance Process at Netstar B.P.O. Netstar B.P.O. ensures that there is

continuous focus on Process improvement and Quality Assurance by maintaining an

independent Quality Management Group. With Real time performance monitoring tools

and call barging facilities which are available to their clients. Call recording facilities are

available if required.At Netstar, they constantly strive to achieve the highest possible

standards in their day-to-day work and in the quality of services, they provide. They

always try to exceed their clients' expectations by continually improving their delivery

processes to bring value to their customers' businesses.

Continuous monitoring of customer interactions’ quality

Random or 100% recording, for quality evaluation, covering both process and soft skills.

Coaching & feedback for improvements.

Calibration with internal and external customers.

Data analysis for correlations on performance against quality parameters.

Chapter II: Objectives and Methodology

OBJECTIVE OF THE STUDY

PRIMARY OBJECTIVE

To study the impact or the influenze of employee involvement in the business.

SECONDARY OBJECTIVE

To analyze the Employee satisfaction level.

To find the employee’s motivational level.

To determine the employee perception of the organization and its various spheres.

To study the Employees attitude towards management.

To provide valuable suggestions to the company.

To find out the factors that influences the Employee’s involvement.

RESEARCH METHODOLOGY

Research methodology is used to solve out all systematic problems of the

research. In this study, first the logic behind the problem has been clearly analyzed and

then the conclusion is given according to the general procedure. It is not only used, to

know about the research methods or technique but also to gain knowledge about the

various dimensions of methodologies.

Research design is the general process that guides the data analysis of the project

and it brings the research under a descriptive of methodology. The major purpose of the

descriptive research is to analyse the data collection primarily and to make various

suggestions to the research for a conclusive result. Then the conclusive research is made

to analyse the actual result of the research from the expected quality. Thus the descriptive

and conclusive research design is used for this research.

An undisguised structured questionnaire is used for this research as it convinced

the respondent by providing more comfort in responding for the questions raised by the

researcher. The question, which comes under this questionnaire, made the respondent to

understand the question clearly.

Moreover multi-choice question and rank questions were been raised in the

questionnaire and the analysis of these questions were been carried out by the research

work of the researcher.

SAMPLING DESIGN:

Sample in a selection of units from the entire group called the Universe of

interest. A sample in a particular segment, which focuses the decisions which can be

applied to the entire organization. The units included in the sample can be easily

approached to obtain the desired information for taking decisions. Here the survey is

mainly used for the particular Employee of the organization in order to make the sample

in a compensative manner.

SAMPLING PROCEDURE:

In sampling procedure the survey is mainly done to selected employees who are

depending upon the lines. As here when the personal interview method is clubbed with

structured questionnaire made the survey technique to be easier and comfortable for the

researcher and the survey was conducted to 75 employees of the organization.

SAMPLING SIZE:

The sampling size includes most of the employee who depend on lines training

and development as it includes more then hundred employees who depend on lines where

75 are trained category, 20 are in training and 5 given training and developing stage.

STATISTICA & TOOLS USED:

ANOVA

Chi square analysis

Percentage analysis

Weighted average method.

Chapter III : Empirical Results :

TABLE – 1

AGE COMPOSITION

AGENO.OF

RESPONDENTSPERCENTAGE

Below 30 46 38.33

31 - 40 40 33.34

Above 40 34 28.33

TOTAL 120 100

INTERPRETATION

From the above tabulation it is observed that 38.33% of the respondents belong to

age group of below 30, 33.34% of the respondents belong to 31-40 age group and 28.33%

of the respondents are in age group of above 40.

TABLE - 2

SEX WISE CLASSIFICATION

SEXNO.OF


Male 88 73.33

Female 32 26.67

TOTAL 120 100

INTERPRETATION

From the above tabulation it is observed that 73.33% of the respondents are males

and 26.67% of respondents are Females.

TABLE - 3

DELEGATION OF WORK

COMPANYNO.OF


Fairly 61 50.83

Not Frequently 43 35.84

Not At All 16 13.33

TOTAL 120 100

INTERPRETATION

From the above tabulation it is observed that 50.83% of respondents feel that the

delegation of work is done in a fair manner, 35.84% of respondents feel delegation is not

done frequently and the remaining 13.33% of respondents feel there is no delegation of

work.

Delegation Of Work

50.83

35.84

13.33

0

10

20

30

40

50

60

Fairly Not Frequently Not At All

opinion

% O

f R

esp

on

dan

ts

TABLE – 4

TYPE OF TRAINING PREFERED BY THE EMPLOYEES

TYPENO.OF


In House Training 41 34.16

Promotional Training 21 17.50

Special Training 17 14.17

Role play Training 12 10.00

Discussion Technique

Training

14 11.67

In House Training 15 12.50

TOTAL 120 100

INTERPRETATION

From the above tabulation it is observed that the maximum preference of the

respondents in the lines is due to the high quality of freight services provided by them.

And the remaining, services do not make much difference from the inflation.

TABLE - 5

EMPLOYEE FEEDBACK OF MANAGERS

PERCEPTIONNO.OF


Excellent 61 50.83

Good 43 35.84

Average 16 13.33

TOTAL 120 100

INTERPRETATION

From the above tabulation it is observed that most of them prefer the Booking

Processing Services so it is awarded rank I and the remaining are the other ranks.

Rating Of Managers

50.83

35.84

13.33

0

10

20

30

40

50

60

Excellent Good Average

Perception

% O

f R

esp

on

den

ts

TABLE – 6

EMPLOYEE PERCEPTION ABOUT THE COMPANY

PERCEPTION NO.OF RESPONDENTSPERCENTAGE

Excellent 3831.67

Good 7360.83

Average 97.50

TOTAL 120100

INTERPRETATION

From the above tabulation it in observed that out of the total respondents 60.83%

feel that the company is excellent and 31.67% expected that it is good and only 7.50%

expected that it is average.

Employee Perception About The Company

38

73

9

01020304050607080


Perception

% O

f Res

pond

ants

TABLE - 7

EMPLOYEE PERCEPTION ABOUT GROWTH IN THE ORGANIZATION


Excellent 4436.67

Good 6957.50

Average 75.83

TOTAL 120100

INTERPRETATION

From the above table it is analyzed that out of total respondents 57.50% feel that

there is excellent growth in the company, 36.67% feel there is good growth opportunities

and only 5.83% feel it is average.

EMPLOYEE PERCEPTION ABOUT GROWTH IN THE ORGANIZATION

Excellent

Good

Average

TABLE - 8

EMPLOYEE PERCEPTION ABOUT TRAINING AND DEVELOPMENT


Excellent 108.33

Good 8974.17

Average 2117.50

TOTAL 120100

INTERPRETATION

From the above table it can be inferred that out of the total respondents 74.17%

feel the training and development programme is excellent , 17.50% feels it is good and

8.33% feels it is average.

EMPLOYEE PERCEPTION ABOUT TRAINING AND DEVELOPMENT

0

50

100Excellent

GoodAverage

TABLE - 9

EMPLOYEE PERCEPTION ABOUT TEAM WORK


Excellent 3630.00

Good 8268.33

Average 21.67

TOTAL 120100

INTERPRETATION

From the above table it is observed that 68.33% of respondents feel that the team

work is excellent , 30% of respondents feel it is good and only 1.67% feel it is average.

30

68.33

1.670

10203040506070

% Of Respondants

1 2 3

Perception

Employee Perception About Team Work

TABLE – 10

EMPLOYEE PERCEPTION ABOUT TREATMENT OF EMPLOYEES


Excellent 2218.33

Good 8772.50

Average 119.17

TOTAL 120100

INTERPRETATION

From the above table it can be inferred that out of total respondents 72.50% feel

that the employees are treated fairly , 18.33% feel that the employees are treated

excellently and only 9.17% feel that the employees feel average.

18.33

72.5

9.17

0

20

40

60

80

% Of Respondants


Perception

Treating Employees

TABLE – 11

EMPLOYEE PERCEPTION ABOUT THE WORK ENVIRONMENT


Excellent 119.17

Good 9377.50

Average 1613.33

TOTAL 120100

INTERPRETATION

From the above table it is observed that 77.50% of respondents feel that the work

environment is good, 13.33% of respondents feel it is average and only 9.17% feel it is

excellent.

9.17

77.5

13.33

0

20

40

60

80

% Respondants


Perception

Employee Perception About Work Environment

TABLE - 12

EMPLOYEE PERCEPTION ABOUT FOOD AND TRANSPORT FACILITIES


Excellent 2621.67

Good 8167.50

Average 1310.83

TOTAL 120100

INTERPRETATION


that the food and transport provided is good, 21.67% feel it is excellent and only 10.83%

feel it is average.

Employee Perception About Food And Transport Facilities

21.67

67.5

10.83

0

20

40

60

80


Perception

% R

esp

on

dan

ts

TABLE - 13

EMPLOYEE PERCEPTION ABOUT SANITATION FACILITIES AND SHIFT

TIMINGS


Excellent 4335.83

Good 7159.17

Average 65.00

TOTAL 120100

INTERPRETATION


that the sanitation facilities and shift timings are good, 35.83% feel it is excellent and

only 5% feel it is average.

35.83

59.17

5

0102030405060

% Respondants


Perception

Perception About Sanitation Facilities And Shift Timings

Series1

TABLE – 14

EMPLOYEE PERCEPTION ABOUT THE LEADERSHIP AND PLANNING


Excellent 3831.67

Good 7663.33

Average 65.00

TOTAL 120100

INTERPRETATION

From the above table it can be inferred that it out of total respondents 63.33% feel

that the leadership and planning in the organization is good, 31.67% feel that is excellent

and 5% feel that it is average.

Employee Perception About Leadership And Planning

31.67

63.33

5

010203040506070


Perception

% R

esp

on

dan

ts

TABLE - 15

EMPLOYEE OVERALL SATISFACTION LEVEL


Above Expectation 1210.00

Upto My Expectation 8873.33

Below Expectation 2017.67

TOTAL 120100

INTERPRETATION

From the above table it can be inferred that out of total respondents 73.33% are

overall satisfied with the company , 17.67% they are not satisfied and only 10% feel it is

above their expectation.

Employee's Overall Satisfaction Level

10

73.33

17.67

01020304050607080

Above Expectation Upto My Expectation Below Expectation

Perception

% R

esp

on

dan

ts

Chapter IV: Data analysis & Discussion

ANALYSIS OF STATISTICAL TOOLS

STATISTICAL TOOLS USED FOR ANALYSIS

TEST: 1

ANALYSIS OF VARIANCE:

ANOVA is the short form of analysis of variance. ANOVA is sued when multiple

sample cases are involved. Generally, this test can't be used to examine the significance

of different amongst more than two sample means at the same time.

ANOVA is said to be the statistical procedure for testing the difference among

different groups of data for homogeneity. It is a technique splits the variance of analytical

purposes.

Variance is an important statistical measure and is understood as the mean of the

square of deviations taken from the mean of the given series. Variance can be derived as

the square of the Standard Deviation.

Symbolically varianceor V = = 2

Where

X stands for the values of the individual items

Stands for the mean of the mean of series and

n stands for the total no. of items.

From the given sample, we can find out the variation of each item within the

sample from the respective Arithmetic mean. This variation is known as "variation within

the sample". At the same time the variation of each sample from the Grand mean can be

calculated and named as variation between the samples. These two variations are

compared and expressed as a ratio known as "Fishers variance Ratio" named by symbol

"F".

Variance ratio is the ratio, which the greater variance bears to the smaller

variance. In other words, this ratio is worked out as under F - coefficient as below:

Greater variance

F = ______________

Smaller variance

The following steps derive the procedure in which ANOVA is used for

Hypothesis test.

1. Observe the total for the individual items values in all the samples and

denote it as T.

2. Derive the correction factor as under correction factor

(C.F) =

3. Analyze the squares of all the items and denote the total value as SSQ,

which derives the sum of squares. The deduct the correction factor (C.F)

from that value in order to find the (sum of squares of the total) SST =

SSQ-C.F.

4. Obtain the square of each sample and divide those square value of sample

by the number of items in the concerning sample and take this total and

the result is denoted as SSC sum of square of deviation for variance

between samples SSC = (C1/N1+C2 / N2 + C3/N3+....) - CF

5. The sum of squares within the samples, (SSE) can be found out by

deducting the following statement

SSE = SST - SSC

6. Find the degree of freedom for SSC & SSE by using the following

formulae.

SSS = No of samples - 1

SSE = No of items - No of samples

7. The next step is to find the variance by dividing the sum of squares of

deviation by respective degree of freedom.

8. The value of 'F' is calculated by dividing the greater variance by smaller

variance i.e.

Greater variance

F = ______________

Smaller variance

9. The calculated value of F has been compared with table value.

In this if the calculated value is lesser than the Table value then the null

hypothesis (Ho) is accepted.

When the calculated value is greater than table value then the Null

hypothesis (Ho) is rejected.

HYPOTHESIS TEST

Table No.7 & 10 [Expected service quality of employees service

& Actual service quality of employees

NULL HYPOTHESIS (H0): These are no significant difference between the expected

service quality and Actual service quality of the employees.

ALTERNATIVE HYPOTHESIS (H1): These us a significant difference between the

expected growth and actual growth of the employees in thew organization.

Employee

Service Quality

and Attitude

Expected Excellent Good Average

ActualAbove

Expectation

Upto

Expectation

Below

Expectation

Table 7 Expected 44 69 7

Table 10 Actual 21 74 25

Total 65 143 32

T = 240

Correction factor (C.F) = T2/N

= 57600/6

= 9600

Sum of squares (SSQ)= 1936 + 4761 + 49 + 441 + 5476 + 625

= 13288

Sum of squares of the total (SST = SSQ - C.F

= 13288 - 9600

= 3688

Sum of squares of Deviation for variance between samples (SSC)

= [C1/N1 C2/N2 + C3/N3 +...] - C.F

= [(65 x 65/2) + (143x143/2) + (32x32/2)] - 9600

= 12848 - 9600

= 3248

Sum of squares within the samples (SSE)

= SST - SSC

= 3688 - 3248

= 440

ANALYSIS OF VARIANCE TABLE

In the below table the 'F' value derives the formula as

Greater variance

F = ______________

Smaller variance

Sources of

variation

Sum of

Squares

Degree of

Freedom

Mean

squares

F

Between samples (or

Columns)

3248 (3-1) = 2 3248/2 =

1624

1624

------

110

Within samples (or

error)

440 (6-2) = 4 440/4 = 110 = 14.76

Degree of freedom for greater variance is 2

Degree of freedom for smaller variance is 4

Table value of F @ 5% level of significance = 6.94

Therefore calculated value > table value

Therefore H0 is rejected

i.e. - These is a significance difference between the perceived quality and actual

quality of employee services and attitude in the lines.

TEST : 1

CHI - SQUARE ANALYSIS:

The main object of chi square test is to determine whether significant difference

exists among group of data or whether the difference is due to sampling.

Application:

Chi-square test explains as the magnitude of discrepancy between theory and

observation. By using X2 it can be ascertained whether the given discrepancy between

theory and observation is due to chance or whether it is due to failure of theory to fit into

the observed facts.

Hence the observed and expected frequencies completly coincide when the value

of X2 is zero. Since the value 0 X2 increases, the difference between observed and

expected frequencies increases. The following formula can be used to calculate the value

of chi - square:

X2 = (O-E) 2

--------------

E

Where, refers to the observed frequencies and E refers to the expected

frequencies.

The following steps derive the steps in which the X2 value undetermined.

i) Calculate the expected frequencies. In general, the expected frequency for

any cell can be calculated from the following equation.

E = RT x CT RT x CT

---------- Or ----------

N GT

E = Expected frequency

RT = the row total for the row containing the cell

CT = the Column total for the column containing the cell.

N = Total number of observation

GT = Grand total of the table values.

ii) Find the difference between observed and expected frequencies and obtain

the squares of these differences, i.e.; obtain the value of (O-E) 2.

iii) Divide the values (O-E) 2 of obtained is step (ii) by the reprehensive

expected frequency and obtain the total

[(O-E) 2/E]. This given the value of X2 which can range from Zero to infinites. If

X2 is Zero it means that the observed and expected frequencies completely

coincide. The greater the discrepancy between the observed and expected

frequencies, the greater shall be value of X2

iv) The calculated value of X2 is compared with the table value of X2 for

given degrees of freedom at a certain specified level of significance. It the

calculated value of X2 in more than the table value of X2, then the

difference between theory and observation is considered to be significant.

v) On the other hand, the calculated value of X2 is less than the table value,

the difference between theory and observation is not considered as

significant.

CHI- SQUARE TEST

Chi-square test for calculating overall satisfaction of respondents with

Lines services (Q.No.4).

Types of training given

to employees in Netstar

Bpo

Satisfaction Level

Row TotalYes No

Initial training38

(44.7)

23

(16.3)

61 (B)

50.8%

Promotional training36

(31.5)

7

(11.5)

43 (D)

35.8%

Special training14

(11.7)

2

(4.3)

16 (E)

13.3%

Column Total88 (A)

73.3%

32(C)

26.7%

120 (F)

100

O E (O-E) (O-E)2 (O-E)2/E

38 44.7 -6.7 44.89 1.004

23 16.3 6.7 44.89 2.753

36 31.5 4.5 20.25 0.642

7 11.5 -4.5 20.25 1.760

14 11.7 2.3 5.29 0.452

2 4.3 -2.3 5.29 1.230

7.841

Calculation for the expected frequency in the above table is stated as below:

Expectation of (BA) = =

=

= 44.7

Expectation of (BC) = = 16.3

Expectation of (DA) = = 31.5

Expectation of (DC) = = 11.5

Expectation of (EA) = = 11.7

Expectation of (EC) = = 4.3

Calculation value of X2 = = 7.841

Table value of X2 = (r - 1) x (c - 1), 5%

= X2 (3-1) x (2 - 1), 5%

= X22, 5% = 5.991

CONCLUSION:-

Since calculation value > table value we reject Ho @5% Level of significance

tat ; difference in employee performance when training is given before and after training.

We reject Ho at 5 per cent level and conclude that Training programme has been a

success.

TEST

WEIGHTED AVERAGE METHOD

This method is used to find the average weights for the ranks, which is to

determine the most preferred factor. For each rank the variables are considered and

number of response has been weighed. Among those weighted averages the most

preferred factor is chosen as one with the minimum average. The next average selects the

next rank and proceeds with the other ranks also.

As here we consider the ranks from 1 to 5 as the 6th option could be ignored as it

has not been stated any rank by the respondents so we consider the ranks from 1 to 5.

These ranks are been desired clearly with the help of the formula proceeded below:

Weighted average XiWi / Wi, where

i = 1 to 5

W = weight (1 to 5)

X = attributes

Weighted Average Method

Ranking based on employee prefer the Training methods.

Training methods1

(5)

2

(4)

3

(3)

4

(2)

5

(1)TOTAL

AVG

TOT / 75

In House Training 24 8 114 52 80 328 4.37

Promotional Training 54 62 69 36 15 236 3.14

Special Training 21 78 114 76 15 304 4.05

Role play Training 12 30 51 104 250 447 5.96

Discussion Technique

Training

17 24 102 140 110 393 5.24

Others - - - - - - -

Total No. of respondents = 120

Factors 1 2 3 4 5

Weights 5 4 3 2 1

Based on the calculation shown above we infer that the factors can be ranked as follows:

TRAINING METHODS RANKS

In House Training 3

Promotional Training 1

Special Training 2

Role play Training 5

Discussion Technique Training 4

LIMITATIONS

Though the sample size is small by numbers it made some of the respondents

to fell as a long one due to the respected sub division.

Responses of certain Employees were not up to the expected level, which

could have influenced the result of the study.

As here all the quantitative tools have not been used while the questionnaire is

considered to be long so the researcher has chosen the currently required tool,

which could produce an accurate result.

Certain quires were very busy, they took quite a long period to respond and

some of the quire refused to respond.

As here exhausted survey method and multiple survey method have not been

used may also influence the exact result of the study.

Chapter V: Summary and Conclusions:

FINDINGS

1. From the study, it is analyzed that 38.33% of the respondents are age group of

below 30, 33% of respondents belong to 31-40 age group and only 28.33% of

respondents are in age group of above 40.

2. 73.33% of the respondents are male and only 26.67% of respondents are female

3. From the study 50.83% of respondents are found to believe that the deleagtion of

work is done fairly while 35.84% feel that delegation of work is not done

frequently and only 13.33% of respondents feel that delegation of work is not

done at all.

4. From the study we find that almost 70.34% of the employees feel that in house

training is the best.

5. 50.23% of the employees feel that the managers are excellent and 35.34% of the

employees feel that the managers are good and the remaining 14% of the

employees feel that the managers are average.

6. 31.67% of the respondents feel that the company is excellent , 60.83% of the

respondents feel that the company is good and 7.50% of the respondents feel that

the company is average.

7. 36% of the respondents feel that there is good growth in the organization and 51%

of the respondents feel that the growth is not so good in the organization and 13

% of the respondents feel that there is no growth in the organization.

8. 8.33% of the respondents feel that the training and development program in the

company is excellent and 74.5% feel that the training and development program is

good and 17.50% feel that it is average.

9. 60% of the employees feel that there is very good team work in the organization

and 38.5% feel that the team work is good and 1.6% of the respondents feel that

the team work is average.

10. 18.1% of the employees feel that the employees are treated excellently and 67%

of the respondents feel they are treated pretty good and 14% of the respondents

feel they are treated averagely.

11. 9% of the employees feel that the work environment is excellent and 67% of the

respondents feel the work environment is pretty good and 24% of the respondents

feel it is average.

12. 12% of the employees feel that the food and transport provided is excellent and

57% of the respondents feel the food and transport provided is pretty good and

31% of the respondents feel it is average.

13. 35% of the employees feel that the sanitation and shift timings are excellent and

59% of the respondents feel sanitation and shift timings is pretty good and 05% of

the respondents feel it is average.

14. 31% of the employees feel that the leadership and planning are excellent and 56%

of the respondents feel leadership and planning is pretty good and 14% of the

respondents feel it is average

15. 10% of the employees feel that they are overall satisfied with the organization and

73% of the respondents feel that they are satisfied to some extent with the

organization and 17% of the respondents feel it is average

SUGGESTIONS AND RECOMMENDATIONS

RECOMMENDATIONS

RECOMMENDATION NO.1

It is recommended that transport facilities may be provide for the employee by the

management

BASIS FOR RECOMMENDATION

It was found that 25% fully disagreed towards their mode of transport not being

convenient. So we have recommended that they may be provided with good

transportation facility.

BENEFITS IF ACTED UPON

A convenient transport sponsored by the management would be an advantageous since

the employees would be able to be regular and on time.

RECOMMENDATION NO.2

It is recommended that the employee’s incentive scheme

may be enhanced


It was found that 28% fully disagreed about the incentives given to them not being

sufficient. So we would like to recommend better incentive schemes be employed for the

staff.


If more incentives are given the employees would be more satisfied and this would be a

moral boost for them to perform well.

RECOMMENDATION NO.3

It is recommended that the catering facility for the staff may be reviewed and improved


It was found that 25% fully disagreed about the catering facility being adequate. they

found their cafeteria service being inadequate.


If good cafeteria facility is provided, they can refresh and relax since they are prone to

work continuously during their shift hours

CONCLUSION

By referring to all inferences made out from the study a conclusion in given as

follows.

From the study it is very clear that employee participation helps the

organization to develop their business. Employee participation also acts as an impetus in

building good relationships amomg the employees and the employers.

Futher from the study we find that the involvement of the employee in the

business helps in increased productivity , employee satisfaction , improves morale and

above everything it helps in the development of the business. Thus from the study it is

very clear that employee participation in business is one of the most important aspects in

today’s business.

BIBLIOGRAPHY

C.R. Kothari(1999) Quantitative Techniques, 3rd Edition Vikas publishing house Pvt Ltd.

C.R. Kothari (2000) Research Methodology and Techniques,Vishwa prakasham, new Delhi.

R.S. Dwivedi (2001) , Research Methods in behavioral sciences, Macmillan India,

Ltd.

S.M. Jha ( 2000) Services Marketing , Himalaya Publications Millennium

Edition.

Annexure:

QUESTIONNAIRE

Employee Participation In business Development

NAME:______________ SEX:______ DATE:______________

1) What is your age?

Below 25..............................................................26 to 30................................................................31 to 35................................................................36 to 40................................................................41 and above........................................................

2) How long have you worked for Netstar Bpo?

One year or more.................................................Six months to less than a year..............................Less than six months............................................

3) Are the higher authorities delegating jobs to the employees?

Delegation is not done fairly..........................................................................................

Delegation of work is done but not frequently .............................................................

Employees are given opportunity to prove themselves by delegation............

4) What is the type of training that the employees prefer.

In HouseTraining …………………………………………………………

Promotional Training ……………………………………………………………………….

Special Training …………………………………………………………………..

Role play Training ………………………………………………………

Discussion Technique Training…………………………………………………………………….

5) How would you rate your managers?

Excellent..............................................................Good.....................................................................

Average…………………………………………….. …

6) What was your expectation from the Company with regard to participation?

Excellent..............................................................Good.....................................................................

Average…………………………………………….. …

7) How is the growth in this organization.

Excellent.............................................................Good.....................................................................

Average................................................................

8) How are the training and development programs conducted?

Excellent...........................................................................................

Good ............................................................................................

Average............................................................................................

9) What is employee perception about team work.

Excellent..............................................................Good.....................................................................

Average............................................................................................

10) Employees are treated fairly and equally. Excellent…………………………………………………………………

Good………………………………………………………………………

Average………………………………………………………………….

11) The work environment is friendly & warm

Strongly Agree.....................................................Somewhat Agree..................................................Disagree...............................................................

12) How would you rate the food/transport being provided.

Excellent..............................................................Good.....................................................................

Average................................................................

13) How would you rate the Sanitation facilities & Shift timings ?

Excellent..............................................................Good.....................................................................

Average................................................................

14) How would you rate the leadership and planning in the organization?

Excellent...........................................................................................

Good ............................................................................................

Average............................................................................................

15) Overall, how satisfied are you with the Company as an employee?

Below expectation................................................Upto my expectation............................................Above expectation...............................................

This is albones raj’s suggestions.

Supervisor’s Comments and Suggestions:

• The Title of the project is incomplete, if you are not

mentioning the

name of the organization wherein you have conducted your study

• Certificate (by research supervisor) is missing!

• The format you have adopted for bibliography is not right. An

Illustration of how it should be presented:

Mazumdar.K (2005) Human Resource Practices in Indian Industries,

New Delhi: Sultan and Chand.

Nisbet, Robert A. (2003) Training Methods in Knowledge-based

Organizations,

New York: Prentice hall.

• No appendix! Why?

• Please check the Pondicherry University distance education web

site.

There is a special URL on MBA Project guidelines. Ensure whether

everything you have written is in conformity with their guidelines

• Watch out the font size! The recommended font size is 12”

• The executive summary (‘synopsis’ as you put it)should precede

the

first chapter

• The executive should be comprehensive! As of now, it looks

incomplete!

• Do not use 1st person singular or plural. It is inappropriate in

report-writing. Remember you are the researcher and an objective

observer.

Not the company’s PR Man. So even while describing the company, do not

use ‘we’ or ‘our’ etc.

• Objectives of the study is part of Company profile? Or is it a

chapter by itself? It is not clear to me.

• This is not my idea of review of literature (Not that of

Pondicherry

University, either!). You should be reviewing studies so far conducted

in this area of research, reported and published in journals and books.

This seems to be the weakest point of all dissertations, though! Too

late to change!

• Every table should a numbering and a brief title. The one’s

highlighted in green are a sample of inappropriate stubs and items

worthy of

change. ‘Table’ is better than ‘tabulation’

• Please watch out spelling and grammar mistakes!

• Chapter Number is not indicated. No Table of contents! No list

of

tables! No list of Figures!

• How could the specimen questionnaire appear in the middle of

analysis

and interpretation?!

• Why the statistical analysis is placed separately? It should be

part

of the analysis and interpretation!

• The Chapter arrangement is totally unclear! Pl follow the

sequencing

of chapters recommended by Pondy University.

Project Report on Employee Participation on Business Development

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